Article 9 Simplified

GENERAL PRINCIPLES AND POLICIES

September 2, 2021

Article 13: ECONOMY AND PATRIMONY

Section 1. Bangsamoro Economy and Social Justice - The Bangsamoro Government’s economic policies and programs shall be based on the principle of social justice.

Pursuant to this principle, the Bangsamoro Parliament shall legislate laws pertaining to the Bangsamoro economy and patrimony that are responsive to the needs of its people.

Sustainable Development

Section 2. Equitable and Sustainable Development. – In order to protect and improve the quality of life of the inhabitants of the Bangsamoro, development in the Bangsamoro shall be carefully planned, taking into consideration the natural resources that are available for its use and for the use of future generations.

The Bangsamoro Government shall promote the effective use of economic resources and endeavor to attain economic development that shall facilitate growth and full employment, human development, and social justice. The Bangsamoro Government shall also provide equitable opportunities for the development of constituent local government units and shall strengthen governance systems to ensure people’s participation.

Section 3. Comprehensive Framework for Sustainable Development. – The Bangsamoro Government shall develop a comprehensive framework for sustainable development through the proper conservation, utilization and development of natural resources. Such framework shall guide the Bangsamoro Government in adopting programs and policies and establishing mechanisms that focus on the environment dimensions of social and economic interventions. It shall include measures for the75 reduction of vulnerability of women and marginalized groups to climate change and variability.

Section 4. Bangsamoro Sustainable Development Board. – The Bangsamoro Parliament shall create a Bangsamoro Sustainable Development Board (BSDB), an intergovernmental body composed of representatives from the Bangsamoro Government and the Central Government. The Board shall ensure the harmonization of environmental and developmental plans, as well as formulate common environmental objectives.

Funding support for the Board shall be included in the annual budget of the Bangsamoro Government. However, if there are revenues collected from the exploration, development and utilization of all natural resources within the Bangsamoro, a certain percentage of such revenues shall be allocated for the operation of the Board, as may be provided in a law to be passed by the Bangsamoro Parliament.

Section 5. Bangsamoro Development Plan. – The Bangsamoro Government shall formulate its development plans taking into consideration the Bangsamoro people’s unique needs and aspirations and consistent with national development goals. The plan shall also consider the revenue generation efforts needed for the post-conflict rehabilitation, reconstruction and development of its territory. The plan shall include the promotion of growth and full employment, human development, and address social and economic inequities that have resulted from decades of neglect, historical injustice, poverty and inequality. For this purpose, the Bangsamoro Parliament shall create an economic planning office.

Section 6. Gender and Development. – The Bangsamoro Government recognizes the role of women in governance and shall ensure the fundamental equality before the law of women and men. It shall guarantee full and direct participation of women in governance and in the development process and shall, further, ensure that women benefit equally in the implementation of development programs and projects.76 In the utilization of public funds, the Bangsamoro Government shall ensure that the needs of women and men are adequately addressed. For this purpose, at least five percent (5%) of the total budget appropriation of each ministry, office, and constituent local government unit of the Bangsamoro shall be set aside for gender-responsive programs, in accordance with a gender and development (GAD) plan. In the same manner, at least five percent (5%) up to thirty percent (30%) of the official development funds received by the Bangsamoro shall be set aside to complement said GAD budget allocation.

The Bangsamoro Government shall establish a mechanism for consultation with women and local communities to further ensure the allocation and proper utilization of said funds. It shall identify and implement special development programs and laws for women.

Section 7. Participation of the Bangsamoro in National Development Planning. – The preceding section notwithstanding, and in order to ensure that the Bangsamoro development plans are reflected in the national development plans, the Bangsamoro shall participate in national development planning. The Chief Minister shall be a full- fledged member of the Board of the National Economic and Development Authority (NEDA).

Natural Resources

Section 8. Natural Resources, Nature Reserves and Protected Areas. – The Bangsamoro Government shall have the authority, power, and right to explore, develop and utilize the natural resources, including surface and sub-surface rights, inland waters, coastal waters, and renewable and non-renewable resources in the Bangsamoro.

The protection, conservation, rehabilitation, and development of forests, coastal, and marine resources, including the adoption of programs and projects to ensure the maintenance of ecological balance, shall be given priority.77 The Bangsamoro Government shall also have the power to declare nature reserves and aquatic parks, forests, watershed reservations and other protected areas in the Bangsamoro, amending for this purpose the following laws, among others: a. Republic Act No. 7586, otherwise known as the National Integrated Protected Areas System (NIPAS) Act of 1992, as amended by Republic Act No. 10629; b. Presidential Decree (PD) No. 705, Revising PD 389 or the Forestry Code of the Philippines; c. PD No. 1515 Vesting Jurisdiction and Control over Watershed Reservations in the Ministry of Energy and for other Purposes; d. PD 87, Amending PD No. 8, An Act to Promote the Discovery and Production of Indigenous Petroleum and Appropriate Funds therefor; and e. Republic Act No. 7942, Philippine Mining Act of 1995. The Bangsamoro Parliament shall pass a law on protected areas, regarding the procedure for the declaration, and the management of those that are so declared, and the role of the Bangsamoro Government and other stakeholders in the process.

Section 9. Transfer of Existing Nature Reserves and Protected Areas. – The management and protection of nature reserves and aquatic parks, forests, watershed reservations, and other protected areas in the Bangsamoro territory that have already been defined by and under the authority of the Central Government shall be transferred to the Bangsamoro Government.

Within three months from the establishment of the Bangsamoro Transition Authority, the Bangsamoro Government and Department of Environment and Natural Resources (DENR) as well as other relevant government agencies shall start the process of transferring these areas including the conduct of surveys of all affected areas and the78 planning and transition for each and every protected area. Such process shall be completed within a period not exceeding two years.

Section 10. Exploration, Development, and Utilization of Fossil Fuels and Uranium. - The Bangsamoro Government and the Central Government shall jointly exercise the power to grant rights, privileges and concessions over the exploration, development and utilization of fossil fuels (petroleum, natural gas, and coal) and uranium in the Bangsamoro.

The Central Government, through the Department of Energy (DOE), and the Bangsamoro Government shall adopt a competitive and transparent process for the grant of rights, privileges and concessions in the exploration, development and utilization of fossil fuels and uranium.

The DOE and the Bangsamoro Government will identify and select prospective contract areas to be offered for exploration and development. A qualified Filipino citizen who is a bona fide resident of the Bangsamoro will receive a rating higher than other proponents during the evaluation process. The award of the service contract shall be made jointly by the DOE and the Bangsamoro Government.

Section 11. Preferential Rights of Bona Fide Inhabitants of the Bangsamoro. – Qualified citizens who are bona fide inhabitants of the Bangsamoro shall have preferential rights over the exploration, development, and utilization of natural resources, including fossil fuels (petroleum, natural gas, and coal) and uranium, within the Bangsamoro territory. Existing rights over the exploration, development and utilization of natural resources shall be respected until the expiration of the corresponding leases, permits, franchises or concessions, unless legally terminated.

Section 12. Rights of Indigenous Peoples Over Natural Resources. – The Bangsamoro Parliament shall enact a law recognizing the rights of indigenous peoples in the Bangsamoro in relation to natural resources within the territories covered by a native title, including their share in revenues, as provided in this Basic Law, and79 preferential rights in the exploration, development and utilization of such natural resources within their area.

The right of indigenous peoples to free and prior informed consent in relation to development initiatives shall be respected. Section 13. Mines and Mineral Resources. – The Bangsamoro Government shall have authority and jurisdiction over the exploration, development, and utilization of mines and minerals in its territory. Permits and licenses and the granting of contracts for this purpose shall be within the powers of the Bangsamoro Government.

Section 14. Financial and Technical Assistance Agreements. – The applications for financial and technical assistance agreements (FTAAs) covering mineral resources within the Bangsamoro shall be commenced at and recommended by the Bangsamoro Government to the President.

The manner by which the Bangsamoro Government shall make the recommendation shall be in accordance with the mining policy that shall be adopted by the Bangsamoro Parliament.

Section 15. Regulation of Small-Scale Mining. – Small-scale mining shall be regulated by the Bangsamoro Government to the end that the ecological balance, safety and health, and the interests of the affected communities, the miners, the indigenous peoples, and the local government units of the place where such operations are conducted are duly protected and safeguarded.

Section 16. Legislating Benefits, Compensation for Victims and Communities Adversely Affected by Mining and Other Activities that Harness Natural Resources. - The Bangsamoro Parliament shall enact laws for the benefit and welfare of the inhabitants injured, harmed or adversely affected by the harnessing of natural and mineral resources in the Bangsamoro. Such laws may include payment of just compensation to and relocation of the people and rehabilitation of the areas adversely affected by the harnessing of natural and mineral resources mentioned above.80 The Bangsamoro Parliament may, by law, require the persons, natural or juridical, responsible for causing the harm or injury mentioned above to bear the costs of compensation, relocation and rehabilitation mentioned above wholly or partially.

Section 17. Bangsamoro Mining Policy. - Policies on mining and other extractive industries shall be drawn up by the Bangsamoro Parliament in accordance with its Comprehensive Sustainable Development Plan, as well as its over-all medium-term and long-term Bangsamoro Development Plan.

Section 18. Zones of Joint Cooperation. – Zones of Joint Cooperation in the Sulu Sea and the Moro Gulf are hereby created, the coordinates of which shall be defined by an ad hoc joint body composed of representatives from the Department of Environment and Natural Resources (DENR) and the National Mapping and Resource Information Authority (NAMRIA) and an equal number of representatives from appropriate agencies of the Bangsamoro Government. The Joint Body shall be convened within thirty (30) days after the ratification of this Basic Law and shall cease to exist after it has established the coordinates of the Bangsamoro territory, including the Bangsamoro Waters and the Zones of Joint Cooperation. However, the said joint body shall be reconvened within thirty (30) days after the conduct of a plebiscite for the inclusion of other territories as provided in the Basic Law.

Section 19. Joint Body for the Zones of Joint Cooperation. – There shall be created a Joint Body for the Zones of Joint Cooperation composed of a Bangsamoro Minister as Chair, at least one (1) representative of a constituent local government unit of the Bangsamoro adjacent to the Sulu Sea, at least one (1) representative of a constituent local government unit of the Bangsamoro adjacent to the Moro Gulf, the Secretary of Environment and Natural Resources, the Secretary of Agriculture, and the Secretary of Transportation and Communication of the Central Government, or their authorized representatives, and their counterpart officials from the appropriate Bangsamoro offices and/or agencies. There shall be at least one (1) representative from an adjoining81 local government unit that is not part of the Bangsamoro, and adjacent to the Sulu Sea, and at least one (1) representative from an adjoining local government unit that is not part of the Bangsamoro, and adjacent to the Moro Gulf. The Joint Body shall be responsible for drawing up of policies mentioned in the preceding Section, as well as those necessarily related thereto.

The joint body may invite private sector representatives from the fishing and transportation industries whenever necessary. The Central and the Bangsamoro Governments shall work together to regulate the waters that comprise the Zones of Joint Cooperation in the Sulu Sea and the Moro Gulf. Policies shall be jointly drawn up for the following purposes: a. protection of the traditional fishing grounds; b. benefitting from the resources therein; c. ensuring the interconnectivity of the islands and mainland parts of the Bangsamoro so that they are parts of a cohesive Bangsamoro political entity; and d. ensuring the exercise of the preferential rights of the Bangsamoro people, other indigenous peoples in the adjoining provinces, and the resident fishers in the Bangsamoro over fishery, aquamarine, and other living resources in the Zones of Joint Cooperation. The Joint Body shall promulgate rules and regulations as to the exercise of these preferential rights. The preferential rights granted to the Bangsamoro people under this section shall extend only to those who can establish that they are Bangsamoro as defined in this Basic Law or descendants of a Bangsamoro as of February 2, 1987. The Bangsamoro Government and the Central Governments shall ensure that there shall be free movement of vessels, goods, and people in these Zones of Joint Cooperation.82

Section 20. Exploration, Development and Utilization of Non-living Resources in the Zones of Joint Cooperation. The Joint Body for the Zones of Joint Cooperation shall ensure the cooperation and coordination between the Central Government and the Bangsamoro Government on the exploration, development and utilization of non- living resources in the Zones of Joint Cooperation and determine the sharing of income and revenues derived therefrom. Section 21. Transportation in the Zones of Joint Cooperation. Transportation plying direct routes connecting the islands in Sulu, Basilan, Tawi-Tawi and/or the mainland parts of the Bangsamoro and passing through the Zones of Joint Cooperation shall be considered intra-regional routes. Section 22. Inland Waters. – The Bangsamoro Government shall have exclusive powers over inland waters, including, but not limited to lakes, marshes, rivers and tributaries. The Bangsamoro Parliament shall enact laws on the regulation, management and protection of these resources. It may create a Bangsamoro office and authorities for specific inland bodies of water that shall exercise management powers over these bodies of water. The Bangsamoro Government shall ensure that the utilization of these waters shall primarily be for the benefit of the people in the Bangsamoro and shall ensure that communities in the Bangsamoro in whose territory these waters are found are given an equitable share from the revenues generated from such utilization. Section 23. Agriculture, Fisheries, and Aquatic Resources. – The Bangsamoro Government’s policies and laws on agriculture, fisheries, and aquatic resources shall advance agriculture as a key development strategy, promote productivity measures, and provide support for farmers and fishers especially small landholders and marginal fishers.

Trade and Industry

Section 24. Trade and Industry in the Bangsamoro. –The Bangsamoro Government recognizes the private sector as a mover of trade, commerce, and industry. It shall83 encourage and support the building up of entrepreneurial capability in the Bangsamoro and shall recognize, promote, and protect cooperatives. The Bangsamoro Government shall promote trade and industry in the Bangsamoro by providing avenues through which other countries can learn about its unique industries, economic opportunities and culture through participation in trade missions, trade fairs, and other promotional activities. It can also organize trade missions to other countries observing the necessary coordination with the relevant government agencies. The Bangsamoro Government shall also promote domestic trade preference for goods produced and materials sourced from within the Bangsamoro and adopt measures to increase their competitiveness. The Bangsamoro Government shall also ensure that Bangsamoro products and services gain considerable access to the markets of its trading partners, and particular attention should also be given to the markets of its trading partners who have historic and cultural ties to the Bangsamoro. The Bangsamoro Government shall provide technical and skills training programs, create livelihood and job opportunities, and allocate equitable preferential rights to its inhabitants. In this regard, the Bangsamoro Parliament may adopt laws that will safeguard the rights of workers.

Section 25. Barter Trade and Countertrade with ASEAN Countries. – The Bangsamoro Government shall regulate traditional barter trade and counter-trade with ASEAN countries. The goods or items that are traded with the said countries shall not be sold elsewhere in the country without payment of appropriate customs or import duties.

Traditional barter trade and counter-trade refer to all cross-border trade of all goods not otherwise considered illicit since time immemorial between the Bangsamoro areas with ASEAN countries. The Bangsamoro Government shall ensure compliance with national standards and safety product standards requirements. Any dispute in relation to compliance or non-compliance shall be brought to the intergovernmental relations mechanism.84

Section 26. Economic Zones, Industrial Estates and Free Ports. – The Bangsamoro Government may establish economic zones, industrial estates and free ports in the Bangsamoro. Through the intergovernmental relations mechanism, the Bangsamoro Government and the Central Government shall cooperate on customs, immigration, quarantine service including the attendant international commitments thereto, to implement and make fully operational such economic zones, industrial estates, and free ports within one (1) year from their establishment. Business and other enterprises operating within the Bangsamoro economic zones, industrial estates and free ports shall be entitled to the fiscal incentives and other benefits provided by the Central Government to special economic zones. The Bangsamoro Government shall implement the fiscal incentives and other benefits to investors in economic zones, industrial estates and free ports. Bangsamoro free ports shall be contiguous/adjacent to a seaport or airport. The area of coverage of a free port may be so much as may be necessary of that portion of the constituent local government unit/s of the Bangsamoro, subject to such criteria as the Bangsamoro Parliament may provide in law for that purpose. Existing free ports in the ARMM are hereby transferred to the Bangsamoro Government.

Section 27. Prohibition Against Toxic or Hazardous Substances. – The Bangsamoro Government shall regulate, restrict or prohibit the use, importation, transit, transport, deposit, disposal, and dumping of toxic or hazardous substances within the Bangsamoro. It shall, in the same manner, regulate activities that may adversely impact the environment and may be harmful to health, safety and welfare of the Bangsamoro. Section 28. Halal-Certifying Bodies; Halal Campaign Program. – The Bangsamoro Government shall have the power to accredit halal-certifying bodies in the Bangsamoro. It shall promote awareness through the development and implementation of a halal campaign program.

Banking and Finance

Section 29. Banks and Financial Institutions. – The Bangsamoro Government shall encourage the establishment of:85 a. banks and financial institutions and their branches; and b. off-shore banking units of foreign banks within the Bangsamoro, and principles of the Islamic banking system. Section 30. Islamic Banking and Finance. – The Bangsamoro Government, the Bangko Sentral ng Pilipinas (BSP), the Department of Finance (DOF), and the National Commission on Muslim Filipinos (NCMF) shall jointly promote the development of an Islamic banking and finance system, to include among others the establishment of a Shari’ah Supervisory Board. To facilitate the establishment of an Islamic banking and finance system, the Central and the Bangsamoro Governments shall review existing market environment and policies and adopt measures to enhance the competitiveness of Islamic finance products and that Islamic financial players are not inhibited from introducing Islamic finance products. It shall further promote investor awareness and acceptance in order to build a broader customer and asset base.

Transportation and Communications

Section 31. Transportation and Communications. – The Bangsamoro Government shall exercise such powers, functions and responsibilities that have been devolved or decentralized to the ARMM.

The intergovernmental relations body shall convene the Department of Transportation and Communication, Civil Aviation Authority of the Philippines, Civil Aeronautics Board, Maritime Industry Authority, Philippine Ports Authority, Land Transportation Franchising Regulatory Board, Land Transportation Office, the National Telecommunications Commission, and other concerned agencies of the Central Government and the Bangsamoro Government. The body shall perform the following functions:86

(a) Determine the exercise of additional powers, functions and responsibilities relating to transportation and communications in the Bangsamoro based on the principles of subsidiarity, technical and financial viability, harmonization (uniform system concept), compliance with international standards, treaties, and conventions, and mutual respect and recognition, and in recognition of the Bangsamoro’s aspiration to assume further powers as may be practically operationalized as it capacity develops; (b) Issue rules and regulation to implement the additional powers, functions and responsibilities over transportation and communication in the Bangsamoro; (c) Harmonize policies, programs, regulations and standards; and (d) Resolve problems of implementation between the Central Government and the Bangsamoro Government. All revenues derived by the Bangsamoro Government from the exercise of its powers, functions and responsibilities shall pertain to the Bangsamoro Government.

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